Debt restructuring talks current with IMF, India, China: Sri Lankan President
Sri Lanka has begun debt restructuring talks with the IMF, India and China, with President Ranil Wickremesinghe expressing confidence on Sunday that if the discussions proceed “in an orderly manner”, the country will tackle its worst economic crisis.
Addressing a gathering in the Siambalanduwa district, Wickremesinghe said talks have also started with private creditors on debt restructuring.
“Yesterday, for the primary time, we tend to started talks with the IMF, China, Japan and Asian nation to cut back our debt burden,” he said.
“It will be difficult for us to repay the debt, yet we must find ways to reduce our debt burden. We are facing a situation where we cannot meet the interest payments. But I hope that if we negotiate can be taken forward systematically; then we will be able to solve our problems.”
The president said he spoke to the Chinese finance minister, while Sri Lanka’s finance minister Shehan Semasinghe began talks with India on debt restructuring in Washington on Saturday.
He said funds from the World Bank, the Asian Development Bank, the US and the European Union were being used to pay for the island’s pharmaceutical and fertilizer imports.
Sri Lanka, in late August, signed an employee-level agreement with the IMF for a USD 2.9 billion rescue package over four years. Its completion hinges on assurances from Sri Lankan creditors on debt restructuring.
After declaring its international debt default for the first time in the country’s history, the government in May appointed global legal and debt advisors for debt restructuring.
Sri Lanka is almost bankrupt and has stopped repaying its foreign debt of USD 51 billion, of which it will have to repay USD 28 billion by 2027.
